Rent vs Buy

    Compare renting and buying over time

    Learn the formula
    Monthly Cost (Buy)
    $2361
    Monthly Rent
    $1800
    Total Buy (5yr)
    $141,687
    Total Rent (5yr)
    $108,000
    Renting saves $33687 over 5 years

    * Simplified comparison. Does not include equity build-up, appreciation, or opportunity cost of down payment.

    Should You Rent or Buy?

    The rent vs. buy decision is one of the most significant financial choices you'll make. This calculator compares the true total cost of each option over your expected holding period, factoring in mortgage payments, down payment opportunity cost, property taxes, maintenance, and the growth of home equity versus the flexibility value of renting.

    The result depends heavily on how long you plan to stay. Buying typically wins over longer horizons (7+ years) because you build equity and the upfront costs are amortized. Renting often wins short-term because buying involves closing costs of 2–5% and selling involves realtor fees of ~5%. Run this calculator with different time horizons to find your crossover point.

    Frequently Asked Questions